Here's the problem hiding inside every best funds list.
Most lists rank GIFT City funds against each other. That looks helpful and quietly misleads.
An India midcap fund and a China equity fund are not competing for the same job. Putting them in a ranked order implies a comparison that does not exist.
There is a second problem, and it catches people later. A fund can be closed to you before its performance matters at all.
At Belong, the NRIs who get this right start with two filters, not a league table. Direction of investment, then eligibility.
Start here: are you investing into India or out of it
This single question sorts the entire shelf. GIFT City hosts both directions.
Inbound funds take foreign currency and invest into Indian markets. Outbound funds take money from India and invest globally.
An NRI earning abroad who wants India exposure needs an inbound fund. A resident Indian wanting global exposure needs an outbound one.
We explain the split in inbound versus outbound funds in GIFT City.
Get this wrong and nothing that follows helps. People shortlist funds they were never the intended investor for.
👉 Tip: Write down your direction before you look at a single fund name. It removes most of the shelf immediately.
What is actually available
The retail end of GIFT City is younger than the headlines suggest. Tata Asset Management received IFSCA approval for the first retail inbound scheme during 2025.
More houses have followed. The list below is what Belong currently offers access to, grouped by the exposure each one gives.
The current list sits on our GIFT City mutual funds tool, which is where to check rather than any article.
Note what the shelf does not yet hold. The range is narrower than domestic India, and gaps exist in debt, hybrid and passive categories.
That is a reason to stay realistic about building a full portfolio here today.
The eligibility filter people discover last
Your country of residence can remove a fund from your list entirely. US and Canada based NRIs meet this most often.
Reporting obligations under FATCA lead some funds to exclude those investors. The China fund on the list above is one example.
Check eligibility before you compare anything else. An excellent fund you cannot buy is not a candidate.
Confirm it with the platform and the offer document together. Availability can differ by platform even for the same scheme.
Structure decides more than the name does
Three structures sit under the phrase GIFT City fund, and they behave differently.
A retail scheme is the closest thing to a familiar mutual fund. An alternative investment fund is a different animal with different thresholds and rules.
A feeder or fund-of-funds structure routes your money into an underlying fund, which adds a layer.
We separate these in GIFT City mutual funds versus AIFs and in feeder fund versus fund-of-funds.
Treating an AIF like a mutual fund causes real problems, as GIFT City AIF mistakes sets out. The International Financial Services Centres Authority framework governs all three.
How to judge one fund against another
Compare within a category, never across. A midcap fund and a global fund answer different questions.
Judge each against its own benchmark, which is covered in benchmarks to compare GIFT City funds.
Read the mandate before the performance. A fund's stated strategy tells you what it will do in a market you have not seen yet.
Then look at costs, and at whether the strategy is active or passive. See active versus passive GIFT City funds.
Liquidity matters more here than in domestic funds. Redemption timelines differ, as liquidity in GIFT City versus Indian mutual funds explains.
Our working method sits in how to choose the right GIFT City fund.
👉 Tip: Pick the category before the fund. Most of your outcome comes from that choice, not from the name inside it.
Tax works differently, and the difference matters
Many GIFT City structures are taxed at the fund level rather than in your hands. That is not a detail, it changes your filing position.
The distinction is set out in investor level versus fund level taxation. The Income Tax Department lists the relevant exemptions.
Treatment varies by fund type, so the offer document is the authority, not a comparison page.
Common errors are collected in GIFT City mutual fund tax mistakes for NRIs.
Your country of residence taxes you on its own terms. An Indian exemption does not travel with you.
Our tax filing service handles the Indian side of this.
Where best actually comes from
The best fund is the one that matches a goal you can state in a sentence.
Size the allocation against your whole balance sheet, not against your enthusiasm. Start from your assets and liabilities.
A fund that is right at a small allocation is wrong at a large one. Your net worth sets the sensible size.
Read who should consider GIFT City mutual funds.
For how these sit alongside what you already own, see adding GIFT City mutual funds to a portfolio.
If you are an Indian investor living in India
This section is for resident Indians, and the position differs from the NRI one above.
Global investing from India through GIFT City uses outbound funds. Remittances run under the Liberalised Remittance Scheme, administered by the Reserve Bank of India.
The India-focused funds on the shelf are built for money coming from outside. Indian investors already hold that exposure at home.
So your shortlist is the global and regional end, not the India end. That is the opposite of an NRI's shortlist.
Domestic funds you already own remain SEBI regulated. The comparison is set out in GIFT City mutual funds versus Indian mutual funds.
Mistakes we see in fund selection
The second row wastes the most time. People research for weeks, then learn their passport rules the fund out.
Category choice deserves more thought than fund choice. See fund category versus individual fund selection.
Decision clarity
If you are an NRI wanting India exposure in dollars, look at inbound Indian equity funds first.
If you are an NRI already heavy in India, look at the global end instead.
If you are a resident Indian seeking global investing from India, the outbound funds are your shortlist.
If you cannot name the category you want, you are not ready to pick a fund.
Where to go from here
Start with the live list on our GIFT City mutual funds tool rather than any article, including this one.
For background on structures and types, read GIFT City mutual fund types.
You can invest through our mutual funds product page. Larger allocations route through the GIFT City AIF tool.
Primary market access sits in our GIFT City IPO guide and the IPO product page.
Derivatives are a separate decision entirely. See our futures and options page and the GIFT Nifty tracker.
If market risk is not what you want this year, compare USD fixed deposits using our NRI FD rates tool.
👉 Tip: Value a long-dated fund by what the money is worth to you today. The discount rate idea applies to your own goals too.
A closing thought
A shorter shelf is not a worse one. GIFT City is early, and early means fewer, clearer choices.
The risk is not missing the best fund. It is buying four funds that do the same thing because a list told you they were all good.
Pick the exposure you lack. Then pick once.
Frequently Asked Questions
Which is the best GIFT City mutual fund for NRIs?
There is no single best fund. The right one depends on the exposure you lack, your eligibility, and your allocation size. Compare within a category, not across.
Can US-based NRIs invest in all GIFT City funds?
No. Reporting obligations lead some funds to exclude US and Canada based investors. Confirm eligibility with the platform and the offer document before shortlisting.
How many GIFT City mutual funds are available?
The retail range is still narrow and growing. Check the current list on a live tool rather than an article, since new schemes receive approval regularly.
Are GIFT City mutual funds tax free?
Many are taxed at fund level rather than in your hands, which is not the same as tax free. Treatment varies by structure and by your country of residence.
Can resident Indians buy these funds?
Resident Indians can access eligible outbound funds by remitting under the Liberalised Remittance Scheme. The India-focused inbound funds are designed for money from outside India.
Sources
International Financial Services Centres Authority, fund management framework: https://www.ifsca.gov.in/
Income Tax Department, tax free incomes: https://www.incometaxindia.gov.in/w/tax-free-incomes
Reserve Bank of India, Liberalised Remittance Scheme: https://www.rbi.org.in/
Securities and Exchange Board of India: https://www.sebi.gov.in/
Disclaimer
This article is for education only. It is not investment, tax or legal advice, and no fund named here is a recommendation.
Fund availability, structures and terms change without notice. Read the offer document and confirm eligibility before investing.
Tax treatment depends on your residential status and country of residence. Please consult a registered adviser.